Being bought out of a mortgage

Bannahhadley

Hello,
Basically I'm just wanting a little bit of advice, as my ex partner is wanting to buy me out of our mortgage.
So we split about 4 months ago and are both living under the same roof and it's rather awkward, so my ex is wanting to buy me out. I'm just wanting in advice on how much I would possibly get from it and what I should be asking for as this is the first time I've done anything like this and want to go out and buy alone now.
So we bought the house for £138,000
We both put down £7000 each making a £14000 deposit.
We have only lived in the hous a year so haven't really made a dent in the mortgage just really paying interest of.
We had the house valued and was told it would sell for £154000.
So really I'm just asking how much should I b asking for it he buys me out and I what sort of steps should we take.
Thanks in advance.

Cakeguts

Whose name is on the mortgage now? Both of you or only you or only your partner?

da_rule

In terms of equity, your £7,000 was about 5% of the purchase price, you could therefore ask for 5% of the current value (£7,700).

Have the mortgage company agreed to remove you from the mortgage? Can your ex afford the payments and the bills himself out of just their income?

If the mortgage company agree to vary the charge (i.e. remove your name and make your ex solely liable) then you just need to register the transfer of ownership.

booksurr

your ex would be a fool to base negotiations on only 1 valuation of 154 since that is merely a guess by an EA as to a price you could start asking for. It is highly improbable that it would sell on the open market for the initial asking price - after all you paid 138 but I'll bet that was not the asking price?

what did you both agree on how the deposit would be treated in the event you split up (you did make such an agreement didn't you? Surely your solicitor advised you to get a declaration of trust to protect each of you?)
1. as a share of the property value ie you might not get back the full cash sum if the value had gone down, or you might get back more (eg as above: £7,700) instead
2. as a fixed sum to be paid before the remaining proceeds are split 50/50?

if option 1 you each own the property 50/50 so you ask for 50% of its current value and deduct 50% of the outstanding mortgage to give your claim. Therefore your deposit has been exposed to and benefited from the full market value

if option 2 you ask for £7,000 plus whatever you can agree on top as 50% of the increased value. 154 - 14 - o/s mortgage (lets say it's still the original 124) = 16 to be split 50/50 so you ask for 8k + 7k = 15k in total

G_M

Are you married? are there kids?

Assuming no, and no, then:

* you each put in the same deposit
* you don't say who's been making the monthly payments but it's only been a year and I'll assume you've both contributed

So the property is owned 50/50.

* Let's say you agree the current of £154K (though you need at least 3 valuations, and need to allow for the fact EAs always over-value)

* Let's say your outdtanding mortgage is £124K (138 - 14 though it might be a bit less now)

* So the equity in the property is now 154 - 124 = £30K

* So your ex should pay you £15K

This also of course assumes that he has a spare 15K in his pocket or can raise a new mortgage to borrow the money

robatwork

Hannah can I just suggest you change your username, I am sure you don't want all of your laundry aired in public.